UK TPR: Improvements Needed on Climate Reports 

A review by UK’s The Pension Regulator (TPR) of 71 pension schemes’ annual climate reports has found 43 had set a formal net zero target, with several reports containing examples of trustees taking appropriate action to tackle climate risk. This includes using stewardship to manage climate-related risk and allocating more funds to sustainable investments. But the TPR review also found areas where reports could be improved, with common issues including, disclosures of climate strategy, scenario analysis and metrics activity not at the appropriate level as described in statutory guidance and accessibility issues, which could make it difficult for savers and others to find and access reports online, including long or complicated web addresses and the use of PDFs not compatible with those using reader accessibility requirements. Louise Davey, Director of Regulatory Policy, Analysis and Advice at TPR, said: “Climate change is likely to continue to pose a core financial risk to savers’ pensions for the foreseeable future, so I urge all trustees in scope of the regulations, and their advisers, to read our review and consider how they can improve their governance and reporting of climate-related risks and opportunities.” 

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